Older homeowners fall behind on mortgage payments

On behalf of Bankruptcy Law Firm of Clare Casas on Monday, June 23, 2014.

Recent reports by different organizations show that the generation with the most debt in the United States is the over-65 age group. The reports indicate that more than 65 percent of consumers between 65 and 74-years of age are indebted. Forty percent of the debt owed by this group of consumers is for outstanding mortgages. Many people in Florida are delaying their retirement in order to prevent that they fall behind on mortgage payments.

There is a big difference between paying a mortgage when one is young and when paying it when you are nearing 70. Older people with an outstanding mortgage have to face paying the installments as well as other monthly expenses on an income that has become fixed, with no prospects of big increases. This has led to a situation where retirees have chosen to stay in the labor market for as long as possible.

The above-mentioned situation has led to an increase in foreclosures in the over-65 age group. The percentage of homeowners who are more than 90-days in arrears with their mortgage payments have increased by five times between 2007 and 2011. The data contained in the reports are pointing to a serious situation where older people are forced to work well beyond the age they should.

Retirees in Florida who find that they fall behind on mortgage payments may benefit from obtaining advice on the best plan of action to take in order to find financial security in their golden years. There are a variety of options available to consumers when they become overwhelmed by debt. One possible solution is to file for bankruptcy. An indebted homeowner may find it beneficial to consider the protection of bankruptcy. Opting for one of the possible solutions may provide older homeowners the relief they need to enjoy their retirement.

Source: wallstcheatsheet.com, “How Mortgage Debt Undermines Retirement Security for Millions“, Ruchira Roy, June 20, 2014